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Retirement (IRAs)

IRA Your Way To A Secure Retirement

Social Security and pension plans no longer can be relied on to provide all of the income you’ll need to retire. That’s why opening an Individual Retirement Account is so important.

Depending on which account you open, you can enjoy either tax free distributions when you retire or you can take advantage of a yearly tax deduction and defer taxes on the interest your account accumulates.

Garden State offers two types of IRAs, plus IRA Share Certificates (CDs). You can contribute to either a Traditional IRA, a Roth IRA or both types of IRAs, up to the annual contribution limit. If you are age 50 or older, you can take advantage of the “catch up” provision and contribute even more. Check with your tax advisor.

IRA Money Market Account

APR

APY

Info and/or Terms

0.05%

0.05%

$1,000 - $19,999.99

0.15%

0.15%

$20,000 - $49,999.99

0.35%

0.35%

$50,000 & greater

Traditional IRA

With a Traditional IRA, your contributions may be tax-deductible and you can grow your savings tax-deferred until you retire. When you do retire, your distributions are taxed based on your current income level.

You must be under age 70 ½ to be eligible for a Traditional IRA.

Non-working spouses can make fully deductible contributions to an IRA, even if their spouse participates in a retirement program, as long as their joint income does not exceed $150,000.

Before age 59 ½, you may be able to withdraw money without a penalty to purchase a first home (up to $10,000 maximum) or pay qualified costs of a higher education.

You can’t make contributions after the age of 70 ½.

Check with your tax advisor for current contribution limits.

Roth IRA

The major advantages of a Roth IRA are that you pay taxes on your yearly contributions as regular income, but your account earnings and future withdrawals are tax free, plus you can continue to make contributions after age 70 ½ if you are employed.

Penalty free withdrawals after 5 years

Tax free earnings after age 59 ½

Contributions allowed after age 70 ½ when employed

No required distribution at age 70 ½ or in your lifetime

Tax-free if used for first home purchase (up to $10,000) or education

Tax-free if disabled or upon death

Check with your tax advisor for current contribution limits.

Coverdell Education Savings Account (ESA)

A Coverdell Education Savings Account is sometimes called an Education IRA. It is a trust or custodial account created exclusively for the purpose of paying qualified education expenses for a specified living beneficiary. Education IRAs can also accept contributions by corporations, tax-exempt organizations and other entities. Call or stop by the credit union for the details.

Open Your IRAs Today

Don’t miss this opportunity to IRA your way to a secure retirement and to plan for your children’s education. For the details, call or stop by any branch office.

All credit union deposit accounts, including retirement accounts, are insured by the NCUSIF* for up to $250,000. There are also steps you can take to have higher account balances that are also insured. We can show you how. Call or stop by the credit union.

*The NCUSIF is the National Credit Union Share Insurance Fund. It is a federally insured program governed by the NCUA (National Credit Union Administration).